HUD REPORTS “WORST CASE HOUSING NEEDS” INCREASED IN 2015

WASHINGTON – (RealEstateRama) — The number of very poor unsubsidized families struggling to pay their monthly rent and who may also be living in substandard housing increased between 2013 and 2015, according to a new report released today by the U.S. Department of Housing and Urban Development.  HUD reports that in 2015, 8.3 million very low-income unassisted families paid more than half their monthly income for rent, lived in severely substandard housing, or both.  Read HUD’s latest estimate of Worst Case Housing Needs.

“Two years ago, our nation was still feeling the aftershocks of our housing recession with rents growing faster than many families’ incomes,” said HUD Secretary Ben Carson.  “After years of trying to keep up with rising rents, it’s time we take a more holistic look at how government at every level, working with the private market and others, can ease the pressure being felt by too many un-assisted renters.  Today’s affordable rental housing crisis requires that we take a more business-like approach on how the public sector can reduce the regulatory barriers so the private markets can produce more housing for more families.”

Demand for affordable housing is growing faster than the construction of homes working families can afford to rent, especially in high-cost areas of the country. The Trump Administration is seeking to stimulate the production and preservation of affordable housing in a number of ways.  By pursuing housing finance reform, the Administration seeks to unwind the Federal government’s role in the private mortgage market and ease the stress on rental markets.

Worst Case Housing Needs are defined as renters with very low incomes (below half the median in their area) who do not receive government housing assistance and who either paid more than half their monthly incomes for rent, lived in severely substandard conditions, or both. HUD’s report finds that housing needs cut across all regions of the country and include all racial and ethnic groups, regardless of whether they live in cities, suburbs or rural areas. In addition, HUD concluded that large numbers of worst case needs were also found across various household types including families with children, senior citizens, and persons with disabilities.

HUD’s estimate is part of a long-term series of reports measuring the scale of critical housing problems facing very low-income un-assisted renters. Based on data from the 2015 American Housing Survey conducted by the U.S. Census Bureau, the number of these “Worst Case Housing Needs” increased from 2013 yet remain lower than the nearly 8.5 million households reported in 2011.  For the first time, HUD is reporting estimates of Worst Case Housing Needs for select metropolitan areas across the country (see below).

HUD’s report found:

• After a decline in Worst Case Needs from 2011 to 2013, the number of these very poor unsubsidized renter households increased between 2013 and 2015 to the second highest number of households recorded – 8.3 million.